Hello all, JJ Childers here talking about corporations. Here’s a newsflash about corporations. Most corporations in this country are not high-profile, publicly traded giants. The vast majority of corporations in this country are privately held small businesses.
The question is what is a corporation? Well….
A corporation is a legal entity that behaves like an “artificial person.” It’s not you. It’s not your brother-in-law. It’s a separate “legal being” that you and your brother-in-law can form to do business.
The next question must be, so how can a corporation benefit me?
Well, the first obvious application in our lawsuit-happy country is to have a corporation that takes the heat if the business is sued. You and your brother-in-law keep your houses, your cars and your banks accounts.
Your personal assets are shielded by the corporation.
Yet you have complete control of this “artificial person.” It doesn’t do anything unless you let it!
An estate planning benefit of a corporation is that the corporation doesn’t die. Your entrepreneurial endeavors and long-term business goals can continue for your loved ones through a corporation. And since your stock in the corporation continues on after you are gone, the business can continue even after you are gone in the manner you choose.
To make things better, there are very real tax advantages as well. And while
tax laws change constantly, corporations consistently offer tax advantages, no matter how many times the laws are changed.
